The law which governs cooperatives, prior to the recent enactment of Republic Act No. 9520 (“Philippine Cooperative Code of 2008“), is Republic Act No. 6938 (“Cooperative Code of the Philippines”). Here’s a basic discussion on the new law (a more extensive primer will subsequently be released, initially made available to clients).
Continue readingOn 2 December 2008, the Supreme Court en banc issued A.M. No. 00-8-10-SC, approving the RULES OF PROCEDURE ON CORPORATE REHABILITATION (“Rules”). The new Rules took effect on 16 January 2009. Here are the salient features of the new Rules, in contrast to the old Interim Rules of Procedure on Corporate Rehabilitation (“Interim Rules). Unless otherwise indicated, the old provisions remain the same.
Continue readingRepublic Act No. 9510, also known as the Credit System Information Act, is consistent with the need to establish a comprehensive and centralized credit information system for the collection and dissemination of fair and accurate information relevant to, or arising from, credit and credit-related activities of all entities participating in the financial system. A credit information system will directly address the need for reliable credit information concerning the credit standing and track record of borrowers. An efficient credit information system will also enable financial institutions to reduce their over-all credit risk, contributing to a healthier and more stable financial system.
Continue reading[Republic Act No. 9510, also known as the Credit Information System Act”, was signed by the President on 31 October 2008. See Primer on the Credit Information System Act. The complete text of R.A. 9510 is reproduced below.]
Continue readingOn 17 November 2008, President Gloria Macapagal-Arroyo issued Executive Order No. 758, providing for a Special Visa for Employment Generation (SVEG) that would allow foreign investors to stay indefinitely in the Philippines under certain requirements. Here’s a primer on the SVEG:
Continue reading[Refer to the updated Introduction to the Philippine Cooperative Code of 2008, taking into consideration the enactment of the new law, Republic Act No. 9520. See also How to Register a Cooperative] A cooperative is a duly registered association of persons with a common bond of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable to contribution to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principle.
Continue readingThe procurement (acquisition of goods, services and contracting for infrastructure project) law was enacted to lay down rules and regulations and to modernize, standardize, and regulate the procurement activities of the government. It is a response to the clamor of the citizenry to provide value for taxpayer money (P147.662 billion capital outlay in the P1.227 trillion national budget this year) and show Government commitment to good governance, transparency, accountability, equity, efficiency, and economy in the procurement process. In short, the law wants to deter corruption.
Continue readingIf a contract brings you to court, it is a poorly-prepared contract. The rationale for this statement is this – if the rights and obligations of the parties are clearly provided and defined, there is a lesser chance of misinterpretation. This, of course, is not necessarily true. Even a carefully drafted contract, prepared by the big law firms, may still end up in court if the parties do not comply in good faith with their respective obligations. Still, it would be better to know the basic elements of a contract.
Continue readingAfter deciding to start a business (and the particular business to pursue), one of the important issues is the form of business entity that will serve as the vehicle in pursuing the business. You may say that the next important issue is the source of funding, which is correct, but that issue will be discussed much later. Right now, let’s focus on the forms of business.
Continue readingOn 22 May 2007, Republic Act No. 9474, also known as the “Lending Company Regulation Act of 2007,” was signed by the President. The law is consistent with the declared policy of the State to regulate the establishment of lending companies and to place their operation on a sound, efficient and stable condition to derive the optimum advantages from them as an additional source of credit; to prevent and mitigate, as far as practicable, practices prejudicial to public interest; and to lay down the minimum requirements and standards under which they may be established and do business. Here is a basic discussion of the new law:
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